Mehul Telecom IPO
Mehul Telecom LtdSME
This IPO has listed.
- Open date
- 17 Apr 2026
- Close date
- 21 Apr 2026
- Min. Investment
- ₹2,35,200
- Lot Size
- -
- Fresh Issue
- ₹27.73 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- -
Subscription rate
- Qualified Institutional Buyers32.50x
- Non-Institutional Investors58.75x
- Retail-Individual Investors37.41x
- Total41.81x
Schedule
- Completed: IPO open date17 Apr 2026
- Completed: IPO close date21 Apr 2026
- Completed: Allotment date22 Apr 2026
- Completed: Funds unblock or debit23 Apr 2026
- Completed: Tentative listing date24 Apr 2026
About
Promoter shareholding in Mehul Telecom Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Mehul Vasantbhai Raymagiya | 39,84,000 | 52.27% | 39,84,000 | 38.12% |
| Raymagiya Hemali Mehulbhai | 32,00,000 | 41.98% | 32,00,000 | 30.62% |
Mehul Telecom IPO Strengths & Risks
- Experienced Promoters and Management Team.
- Extensive Distribution Network in Gujarat.
- Comprehensive Product Range.
- Strategic Store Locations and Customer Experience.
- Low Capex Requirements for Growth.
- Strong Financial Partnership.
- Risks Relating to the Business: Opening and closing of stores is a regular part of the Company's business and depends mainly on the revenuegenerating potential of each location. Store performance is influenced by factors such as location, customer footfall, product mix, and operating efficiency. High-revenue stores are retained to strengthen its retail network, while underperforming outlets are rationalized or closed. This approach, while optimizing operations, exposes the company to risks of site selection errors, demand misjudgment, and closure-related costs.
- Risks Relating to the Business: The company's operations and revenues are limited to and concentrated in the geographical region of the State of Gujarat. In the State of Gujarat also its business revenue is generated mainly from two districts viz., Rajkot and Morbi. Any adverse development affecting the company's operations in this region or any saturation could have an adverse impact on its business, financial condition and results of operations.
- Risks Relating to the Business: The company has a limited operating history and may be subject to risks inherent in early-stage companies, which may make it difficult for investors to evaluate its business and prospects.
- Risks Relating to the Business: A substantial portion of the company's revenues has been dependent upon a limited number of customers. Loss of any of the top customers or any reduction of business from any one of them may affect the financial performance of the Company.
- Risks Relating to the Business: The Company had negative cash flow from operating activity in recent financial years, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
- Risks Relating to the Business: The company's Registered Office and other premises from where the company operates are on lease basis and not owned. In case of non renewal on commercially acceptable / favourable terms in future, it may lead to disruption in the company's operations and / or higher rent, which in turn could have an adverse effect on its business prospects and financial condition.
- Risks Relating to the Business: The company's business is a high volume-low margin business. The company's inability to regularly grow its turnover and effectively execute the company's key business processes could lead to lower profitability and hence affect its operating results and financial conditions.
- Risks Relating to the Business: Competition from online retailers who can offer products at competitive prices and are also able to offer a wide range of products may adversely affect its business and the company's financial condition, results of operations and cash flows.
- Risks Relating to the Business: The Mobile and Accessories retailing business has a low entry barrier. Increase in competitors, including new entrants who can capture market share rapidly could have an adverse impact on the company's business, financial condition and results of operations.
- Risks Relating to the Business: Over dependence of the company's business on franchise owned and franchise operated model (FOFO) rather than company operated and company owned (COCO) model.
- Risks Relating to the Business: The company has a limited product line focusing exclusively on the distribution of telecom products including mobile devices, accessories and other related gadgets exposing us to significant risks due to lack of diversification.
- Risks Relating to the Business: High price fluctuations of mobile phones and accessories driven by technological advancements leading to significant price drop of older models simultaneously.
- Risks Relating to the Business: The company's operations are heavily reliant on the logistics and transportation systems of the manufacturers' distributors. Any delays, disruptions, or inefficiencies in the distributors' logistics operations could significantly impact the timely availability of products the company sells and could have a material adverse effect on its business, financial condition and results of operations.
- Risks Relating to the Business: The company's insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.
- Risks Relating to the Business: The Company is dependent on a few numbers of suppliers for purchase of products. Loss of any of these large suppliers may affect its business operations.
- Risks Relating to the Business: The Company's business highly depends on the brands recognition and reputation of the products it offers to sell and their inability to maintain or enhance brands image that the company sells could have a material adverse effect on its business, financial condition and results of operations.
- Risks Relating to the Business: Exclusive tie-ups of the manufacturers with specific retailers or groups of retailers could adversely impact its ability to source products competitively or at all.
- Risks Relating to the Business: The Company in the past has entered into Related Party Transactions and may continue to do so in future also, which may affect its competitive edge and better bargaining power if entered with non-related parties resulting in relatively more favorable terms and conditions and better margins.
- Risks Relating to the Business: There are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- Risks Relating to the Business: There have been instances of delays in filings of certain forms which were required to be filed as per the reporting requirements in accordance with the Companies Act, 2013. Any such delays/ discrepancies in the future may attract penalties/ compounding/ adjudication, leading to additional compliance burden, monetary loss as well as loss of reputation for the Company.
- Risks Relating to the Business: The company may be subject to risks associated with product warranty for the brand products. Any product defects or liability claims may cause adverse publicity, reduce customers, and adversely affect its business and results of operations.
- Risks Relating to the Business: The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution. Within the parameters as mentioned in the chapter titled "Objects of this Issue" of this Red Herring Prospectus, the Company's management will have flexibility in applying the proceeds of this Issue.
- Risks Relating to the Business: The company's business is subject to cyclical volatility due to which there may be fluctuation in the sales of products which could lead to a higher closing inventory position, which may adversely affect its business.
- Risks Relating to the Business: In addition to normal remuneration, other benefits and reimbursement of expenses to the company's Promoters and Directors; they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and our Group Companies/Entities.
- Risks Relating to the Business: The company operates in a competitive industry and the company's market share may be adversely impacted in case the company does not keep ourselves apprised of the latest consumer trends and technology and if the company fails to compete effectively in the markets in which the company operates.
- Risks Relating to the Business: The company's success depends heavily upon its Promoters, Directors and Key Managerial Personnel for their continuing services, strategic guidance and financial support. The company's success depends heavily upon the continuing services of Promoters, Directors and Key Managerial Personnel who are managing the Company.
- Risks Relating to the Business: The company's Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the Issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Risks Relating to the Business: The company's ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Risks Relating to the Business: Any future issuance of its Equity Shares may dilute prospective investors' shareholding, and sales of the company's Equity Shares by its major shareholders may adversely affect the trading price of the company's Equity Shares.
- Risks Relating to the Business: There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Risks Relating to the Business: The company cannot assure the accuracy completeness or reliability of information relating to India the Indian economy and the industry in which the company operates included in this Red Herring Prospectus.
- Risks Relating to the Business: The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, The company have not identified any alternate source of financing the `Objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- Risks Relating to the Business: Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Risks Relating to the Business: The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidents could adversely affect its financial condition, results of operations and reputation.
- Risks Relating to the Business: There may be an adverse impact on the company's business, results of operations and financial condition due to implementation of the Labour Codes and changes in labour laws.
- Risks Relating to the Business: The requirements of being a publicly listed company may strain its resources.
- Risks Relating to the Business: The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.
- Risks Relating to the Business: There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE in a timely manner or at all.
- Risks Relating to the Business: There is no existing market for the company's Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.
- Risks Relating to the Business: The price of the Equity Shares may be highly volatile after the Issue.
- Risks Relating to the Business: You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.
- Risks Relating to the Business: There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
- Risks Relating to the Business: Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by the company's Promoters or members of its Promoter Group may adversely affect the trading price of the Equity Shares.
- Risks Relating to the Business: Sale of Equity Shares by the company's Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Risks Relating to the Business: Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
